St. Paul daily globe., 1887-08-26
In All His Dealings With the
Northwestern Manufaetur-
ing and Car Co.
The Thresher Manufacturing
Co. Wants the Car Co.
Property Sold.
Troubles Of the Black Crook
Accident in a Plan
ing Hill.

DdNlS OCCuDlcu lIlt lllllC VI IHO OOui
with forcible and learned argument.
which was listened to with great atten-
ton by all. Before commencing the ar
gument of law and fact the speaker paid
TO the honesty and chivalry and self
sacrifice of Senator Sabin warm and
kindly tribute, saying in substance:
When in the middle of the year 1881, like
a thunder stroke in clear day. 1t was an
nounced that this great corporation
bin & Co. corporations upon which
so much of the welfare Of this state de-
pended had failed. it was felt to be great
calamity not only to the people here. but TO
the communilv at large, to say nothing Of the
individual distress il caused to Its various
promoters. And such is human nature that
it was cast abroad throughout the land; II
was conveyed by electricity and printed all
over this country, that there had been
GROSS FRAUD,
criminal distractions OF assets, ana mlsap-
preparations and conduct to Wmcn terms
were applied which do not care III the least
to perpetuate by repeating until an impress
sion went abroad, deep rooted ana 10 some
extent inveterate, that for failures OF TINS
magnitude there must be some truth III tLe
assertion. Those charges went lnto lne
pleadings Those who made them under,
took to prove their assertion. l have perused
this testimony carefully and fall 10 m ma
this substantiated, and Of all those VINO pro-
NOTED the charges no one has cared 10 say
except by implication and lnuendo that II
has bit of foundation in fact, and the only
person who appears here to supstalllatfe
them and base any claim upon Ihem WtlL
anV apDearance of reliance Is Mr. POrter ara
the bank with which he Is connected. 1here
was first charge that there had been an I'M
position Of the assets OF Seymour Sabln q
Co., upon the Car Co., at
FRAUDULENT OVER VALUATION.
The evidence which entirely refutes tnaI
assertion comes entirely from the mouth Oh
Mr.. Gilfllan and Mr.. Clarke, their own men,
Their versions are, III brief. that Mr.. clarke
was selected or suggested by Nil Porter, Il
man entirely disconnected from the car COM
pany; that Mr.. Gilillan, by common consent
among the promoters of the enterprise Whlch
was still inchOate, was selected py them'
that there was valuation made by men
above critici.m m conducted in manner ne
yOnd cavil and with a degree OF dlllgehce
which one seldom sees equaled IN cases OF
this character. 1t also appeared that SO Iar
as Mr.. Sabin was concerned, after certain
DEVELOPMENTS among stockholders OF Sey-
mour, Sabin & Co., th 1t he. with dellcacy
of feeling which did him honor, Withdrew
eat RELY from the matter of valuation ana ne
got ation and was away most OF the time
1tappears that the
VALUATION WAS CUT. DOWN.
and that at the aIao;:nt to which 1t was cur
doan, in the language OF MI GllhHah,
gross injustice had bean done TO seymour;
Sabin d Co and that in his oplnlon, based
upcn the experience he had had with the
Car conn any up to The time when he testl-
fed that in Justice amounted i'll round num-
bers to nearly one million Of dollars ana,
NAV il please your homer, although it was
diligently disseminated through the pubnc
press and conversations i'll business circles
that in some way which would yet be found
out, there must have been. to account 1or tnis
enormC us failure of the Car company, lei
oni0uS abstraction of its assets III the course
Of its administration. and all the lnNeStlSa-
ton that has been made, extending over
more than year and resulting in this enor-
nous mass Oftestimony, fails 10 develop any
thing of the kind. No witness has peen aDle
to put his finger upon. =
AN ITEM OF MIsAPPRoPRIATION-
But to my mind there is ample reason why
this failure not only took place, put why II
must have been inevitable. 1t Is that Wnen
the car company went into business lney
started in without cent OF working casn
capital generally speaking, and looking 10
the future TO negotiation. for that when was
to enable them TO run; Ana fnat conaItioI
was known. suggested. planned and carried
out by some of the very men who are now
complaining. Mr.. Porter certainly knew OF
the way this was being done, and parucl-
pated in il. 1t was known to Mr.. GllilIan
and To Mr. Clarke. who was vice president
and manager Of the concern after Mr.. Sabln
was elevated to political honors Ihey
trusted 10 the buoyancy of the times thllk-
and that their unlimited credit would enable
thcm to pull through. But when
the time of depression came and
misfortune after misfortune overlook this
osity which passes my comprehenslon.
thrown his fortune into the abyss opened be-
meath his feet in the hope that it would close
up it went the way of all other concerns,
corporate or individual, which attempt to do
business upon a basis of that character. The
SEEDS OF THIS FAILURE
were planted in the inception OF this cor,
poration. 1t started in with an expense ana
labor account of 100000 a month. 1t paid
in interest at least S244 900. The damage by
the fire was S350.o00. The car business
plant was increased at a cost of S4Oo.oO0.
They declared, i'll a business which on any
proper estimate never made cent divi-
dends amounting 10 S3G0,000, making
total of these items of Sl,254,o00,
practically swallowed up between the
middle of the year 1882 and the year 1884.
This and the vicious principles upon which
this corporation was instituted and conduct
ed, is sufficient to account TOR thls 1allure,
and my own opinion is that If the men con,
nected with Mr.. Sabin in this business had
been half as nRgnanimouS, half as chlval-
rous, half as desirous that it should succeed
as he was and had done tithe of what he
did by their own contributions and personal
credit, the thing could have been continued
along until the present good times came and
the company could have gotten far enough
from the shore 10 spread all of Its sails and
catch all of the winds of prosperity. But
this was not to be. Without consultation with
Mr. Sabin, who had committed all he had on
earth to keeping this institution alive, and in
a fit of panicky and
certain gentlemen rushed over to saltwater
and pulled the king post from out this enor-
nous edifice and let the roof down through
all the stories into the cellar. Now, If your
honor please it is well known that the rela-
tions of MIR. Sabin and myself for some years
have not been entirely cordial, but L will
pause here to say that ii gives me more pleas
ure to state as my, abiding conylcton, de
rived frcm a careful perusal of all this rec
ord, that no man in the course of the admin
istration of this business has come so un-
scathed and clear as man OF Integrity,
honor and chivalrous generosity from out
these proceedings as ID. n. Sabin. He has
my profoundest sympathy. lie has my
Warlnest admiration. No man With an m
prejudiced mind can read that record and
have any other feeling. And ii gives me the
greatest pleasure to be enabled to say this in
spirit of candor, truth and firm and abiding
belief.
DMr. Davis then proceeded with his
argument, devOting his attention partlc-
ularly to answering that of Judge
PinDey upon the other side, and was
both able and eloquent. Judge Flan-
drau will close the argument III the case
this morning.
A petition from the Tlresher Manu-
featuring company was filed asking for
a sale of the property of the Car COM
pany, and an order of the court was
made fixing the 9th of September for d
hearing in the matter.
OTHER SALTWATER MATTERS.
The two girls who maSqueraded in
male attire at the 'Black Crook: per-
formance "Wednesday evening, were dis
charged on their own recOgniZance after
being taken to the police station. and
when their case was called in the police
court yesterday morning failed to ap-
pear 1t being represented to the court
that one of them at least was very rep
utable girl and that both were in very
humble frame of mind and would never
wear male attire again, their case was
dismissed.
The main gear in the Hersey & Bean
Lumber connanV'S new nianing mill